Central Alberta Well Services Corp.
TSX VENTURE : CWC

Central Alberta Well Services Corp.

November 05, 2009 13:11 ET

Central Alberta Well Services Announces Mailing of Rights Offering

CALGARY, ALBERTA--(Marketwire - Nov. 5, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Central Alberta Well Services Corp. ("CWC" or the "Company") (TSX VENTURE:CWC) announces that the Offering Prospectus for the Company's previously announced Rights Offering (the "Offering") is being mailed to all shareholders today. Tricap Partners II L.P., CWC's major shareholder, has agreed to act as standby purchaser for the Offering. The Offering will raise total gross proceeds of $33.0 million for the Company and is open to all shareholders in qualifying jurisdictions. Under the Offering, CWC will issue each eligible shareholder one right ("Right") for each Common Share held, and each Right will be exercisable for 4.855 Common Shares at a price of $0.25 per share. The Rights Certificates are being mailed with the Prospectus. The Rights expire on November 30, 2009 and trade under the symbol CWC.RT on the TSX Venture Exchange. Shareholders are encouraged to read the Prospectus before making an investment decision regarding the Offering.

The proceeds from the Offering will be used to reduce indebtedness under the Company's long-term credit facility with Brookfield Bridge Lending Fund Inc. which matures on January 25, 2010, any outstanding amounts on the operating line facility in place with Alberta Treasury Branches and general corporate purposes.

About Central Alberta Well Services

Central Alberta Well Services has its corporate office in Calgary, Alberta, with its operational head office in Red Deer, Alberta, and additional operating centres in Provost, Brooks and Grande Prairie, Alberta. The Company provides oilfield services, including well servicing, coil tubing, snubbing, nitrogen, well testing and oilfield equipment rentals to oil and gas companies operating in the Western Canadian Sedimentary Basin.

Certain statements contained in this press release, including statements which may contain such words as "could", "should", "believe", "expect", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking statements, including, but not limited to, statements as to: future capital expenditures, including the amount and nature thereof; business strategy; expansion and growth of the Company's business and operations; and other matters. Management has made certain assumptions and analyses which reflect their experiences and knowledge in the industry. These assumptions and analyses are believed to be accurate and truthful at the time, but the company can not assure readers that actual results will be consistent with these forward-looking statements. However, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the Company's expectations. All forward-looking statements made in the press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected outcomes to, or effects on, the Company or its business operations. The Company does not intend and does not assume any obligation to update these forward-looking statements. Any forward-looking statements made previously may be inaccurate now.

Common Shares: 27,187,361

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Central Alberta Well Services Corp.
    Darryl E. Wilson
    President & Chief Executive Officer
    (403) 264-2177
    darrylwilson@cawsc.com
    or
    Central Alberta Well Services Corp.
    Darcy A. Campbell, CMA
    Vice-President, Finance and Chief Financial Officer
    (403) 264-2177
    darcycampbell@cawsc.com
    or
    Central Alberta Well Services Corp.
    755, 255 - 5 Avenue SW
    Calgary, Alberta T2P 3G6